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Royal Mint and CME to offer blockchain based gold trading

First Published 29th November 2016

The Royal Mint partners with CME Group to build and launch a digitised gold offering called Royal Mint Gold.

Vin Wijeratne, The Royal Mint

Vin Wijeratne, The Royal Mint

London - The new product, launching in 2017, will see The Royal Mint issue Royal Mint Gold (RMG) as a digital record of ownership for gold stored at its on-site bullion vault storage facility. CME Group will develop, implement and operate the product's digital trading platform. The new service aims to provide an easier, cost-effective and cryptographically secure alternative to buying, holding and trading spot gold.

Commenting on the announcement, Vin Wijeratne, CFO of The Royal Mint, said, "This landmark partnership allows us to combine the world's leading mint, the best futures trading platform globally and best in class technology."

"We're now inviting the wider market to participate in this project alongside us and CME Group and we look forward to engaging with interested parties in the days ahead. Participation will enable us to develop the platforms to be able to connect to the CME network and trade gold."

CME Group will launch a digital trading platform which will operate 24 hours a day, 365 days a year. Unlike the traditional physical spot cost model for investing in gold with management fees and ongoing storage charges levied, RMGs will offer ownership of the underlying gold with the option for conversion to physical gold by The Royal Mint with zero storage cost.

The initial amount of RMG at launch could be up to $1 billion worth of gold. It will be offered through investment providers. Further RMG will then be issued based on market demand.